Franchising

Franchising

Franchising is another form of licensing agreement whereby, as the franchiser, you transfer to the franchisee a total business concept which he exploits within a given territory in return for royalties for the IPRs licensed. There is also commonly a supply arrangement whereby the franchisee is committed to buying his requirements from you.

A franchising agreement would normally involve the supply to the franchisee of expertise, branding, corporate image and management support. In return you would hope to receive an initial sum, payment for goods supplied and sales-based royalties.